GreenFirst Reports Financial Results for the Third Quarter of 2022

GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) today announced results for the third quarter of 2022. The Company’s condensed consolidated interim financial statements (“Financial Statements”) and related Management Discussion and Analysis (“MD&A”) for the third quarter and three quarters endedSeptember 24, 2022 are available on GreenFirst’s website at and on SEDAR at All amounts are in thousands of Canadian dollars unless indicated otherwise.

Third Quarter of 2022 Highlights
*Third quarter 2022 (“Q3 2022”) net loss was $23.3 million or a $0.13 loss per share (diluted), compared to net earnings of $30.7 million or $0.16 per share in the second quarter of 2022 (“Q2 2022”). This quarter marked the one-year point for the Company operating its acquired forest- products assets.
*Q3 2022 Adjusted EBITDA was a loss of $7.9 million, compared to Adjusted EBITDA in Q2 2022 of $54.3 million. Adjusted EBITDA before duties expensed for Q3 2022 was $5.1 million, compared to $76.6 million in Q2 2022.
*Lumber continued to experience price volatility in Q3 2022, with an average selling price of $780/ mfbm compared to $1,255/mfbm in Q2 2022. Steeply rising interest rates and inflation reduced demand for lumber products from the second quarter onward, and remain a concern impacting US housing starts and homebuilders’ confidence.
*On September 23, 2022, the Company entered into a credit agreement with a tier-1 Canadian bank for up to $140.0 million consisting of a term loan of $15.0 million and an asset-backed revolving credit facility of up to $125.0 million (collectively, the “Credit Facility”). This refinancing replaced a high yield secured term loan (US$87.3 million outstanding at extinguishment)and a $65.0 million asset-backed loan facility (undrawn at time of extinguishment).
*On November 7, 2022, the Company announced the sale of its 203,000 acres of private forest land south of Kapuskasing, Ontario, to a third party for cash proceeds of $49.2 million.

“In the third quarter, we saw the global lumber markets softening, which along with higher softwood lumber duties is reflected in our results.” said Rick Doman, CEO of GreenFirst. “We will continue to monitor the external challenges we currently face, and work towards cost reduction and operational improvement.”

Acquisition of Sawmills and Paper Mill
On August 28, 2021, the Company acquired six sawmills and one paper mill from Rayonier Advanced Materials (the “Rayonier AssetAcquisition”) for aggregate consideration of $296.1 million. The Company has measured and recorded the identifiable assets acquired and the liabilities assumed at management’s estimates of their acquisition-date fair values. For further information on the purchase price accounting, please refer to the Company’s third quarter interim financial statements.
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